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Wednesday, 25 July 2012

Indonesia and the Philippines to Increase Spending on Defense in 2013

The two governments of Southeast Asia - Indonesia and the Philippines - have announced significant increases in defense spending for 2013 fiscal year.

According to "Jane's Defence Industry," The Cabinet of Ministers of Indonesia announced an increase in the budget of the Ministry of National Defense to 76.54 trillion rupiah (8.1 billion dollars), which is 18% more than in FY 2012

Department of Budget and Management (DBM) said the Philippines July 19 on the allocation of the Ministry of National Defense 121.6 billion pesos (2.9 billion dollars) - an increase of 12.5% ​​compared to FY 2012

According to the Department's Budget and Management, the Philippines, the 47.2 billion pesos allocated to the article "internal security" and 2.1 billion pesos - the "territorial defense initiative."

Armed Forces of the Philippines in the arms procurement program (CUP-Capability Upgrade Programme) will also receive five billion pesos, which will be used to purchase critical equipment, boats and airplanes.

As part of the CUP in the next few years will be a series of acquisitions of military hardware. In particular : air-and sea-based missile system, various types of helicopters, patrol aircraft, medium-sized military transport aircraft and combat-capable aircraft.

According to the President Benigno Aquino on July 23, the program has allocated more than the administration CUP 28 billion pesos. Projects worth another 75 billion pesos in the forwarded to the Parliament. These funds will be spent over the next five years.

In addition to the costs of the defense budget and the Department of Planning will provide Philippine Coast Guard (which reports to the Department of Transport and Communications) funds amounting to 1.8 billion pesos, a 62% increase compared to FY 2012

Ministry of Interior and Local Government allocated 120.8 billion Philippine pesos (an increase of 21%).

The Cabinet Office did not disclose Indonesia expenditure for the purchase of military hardware, though, as you know, they include fighter aircraft, transport aircraft, frigates, maritime patrol boats, helicopters, and several types of anti-aircraft missile systems.

Despite the increase in defense spending, accounting for a small percentage of the gross domestic product of Indonesia allocates to defense about 0.8% of GDP, Philippines - about 1.1%. At the same time, both countries have in recent years have seen the compensation inadequate funding of defense spending from extrabudgetary sources.